Avallon MBO Fund II

Location:

Poland

Project number:

43748

Business sector:

Equity funds

Notice type:

Private

Environmental category:

FI

Approval date:

10 Jul 2012

Status:

Signed

PSD disclosed:

07 Jun 2012

Project Description

The proposed project, Avallon MBO Fund II, is a specialised private equity fund with the objective to invest primarily in management buy-out and management buy-in transactions. The Fund will invest predominantly in Poland with up to 33 per cent in other new EU member states. The Fund will seek to acquire controlling interests in small to medium-sized companies while investing its capital alongside management teams, empowering managers and supporting the expansion of private ownership. It is expected that individual equity investments will be between EUR 5-10 million (with the average value of investment of approximately EUR 7-8 million).

Transition Impact

The transition impact of the proposed project would come from the following areas:

  • Demonstration of MBO and MBI transactions in Poland and the Region via supporting a specialised private equity fund
    MBO/MBI transactions are still unusual in CEE with Avallon being the only specialised fund concentrating on MBO/MBI transactions and currently focusing on Poland. Its second fund will facilitate further ownership changes within the SME segment, and will expand its reach geographically both through expanding regionally and working with the management of companies to expand cross-border.
  • Provision of equity funding to SME clients who remain outside the scope of interest of larger private equity funds
    The Fund will address capital gaps that SMEs face on the market generally and will also help to show that private equity funds have the capacity to address this segment of the market. Generally, local and regional private equity houses focus on larger ticket deals than the sub-€15 million investments.
  • Demonstration of investee company shareholding restructuring, expansion and corporate governance
    The Fund can substantially contribute to strengthening and supporting the expansion of the investee companies whilst implementing good corporate governance as the company makes the transition to one owned by professional managers.

The Client

Avallon MBO Fund II will be established as a limited liability partnership, registered in the Netherlands. It will be managed by its general partner, Avallon Partners II B.V., a Dutch limited liability company.

Founded in 2001 by three partners, Avallon grew to become a specialised consulting firm advising on MBO transactions whilst also making its own proprietary investments. In 2007 it raised an institutional quality private equity fund investing in MBO transactions. Avallon MBO Fund II will be its second fund.

EBRD Finance

The EBRD is considering a commitment of up to €27 million to the Fund. It is expected that the remaining commitments may include a range of institutional investors, as well as commitment from the General Partner.

Project Cost

The target size of the Fund is €107 million with a hard cap of €120 million.

Environmental Impact

Categorised FI.

The Fund will be required to comply with EBRD's Performance Requirement 2 (Labour and Working Conditions) and Performance Requirement 9 (Financial Intermediaries). Investee companies will be required to comply with national environmental and OHS standards and national labour laws. An Annual Environmental and Social Report will be prepared by the Fund and submitted to the Bank.

Technical Cooperation

None.

Company Contact

Mr. Tomasz Stamirowski, Managing Partner

Avallon MBO Fund
Al. Kosciuszki 17
90-418 Lodz Poland
Tel: +48 (42) 630 97 71
Fax: +48 (42) 630 97 75
Email: t.stamirowski@avallon.pl

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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